American fintech firm Stripe has entered into an agreement to acquire Nigerian payments technology company Paystack to expand into the African market.
Just like Stripe, Paystack also offers a quick way to integrate payments services into an online or offline transaction by way of an API.
It currently serves approximately 60,000 customers. Its client base consists of small businesses, larger corporates, fintechs, educational institutions and online betting companies.
It is being claimed that Paystack processes over 50% of all online transactions in Nigeria.
Following the completion of the acquisition, Paystack is expected to continue operating independently.
Stripe noted that Paystack’s capabilities will be embedded in its Global Payments and Treasury Network (GPTN) in the near future.
GPTN is a programmable platform for global money movement, which currently spans 42 countries.
Stripe and Paystack have been partners for some time. Back in 2018, Stripe led Paystack’s Series A financing round.
Recently, Paystack has launched a pilot programme with businesses in South Africa to expand across the continent.
Paystack co-founder and CEO Shola Akinlade said: “Paystack is a growth engine for modern businesses in Africa, and we could not be more excited to join forces with Stripe, whose mission and values are so aligned with ours, to nurture transformative businesses on the continent.
“Leveraging Stripe’s resources and deep expertise, we are excited to accelerate our geographic expansion and introduce more payment channels, more value-added services, and deeper integrations with global platforms.”
Stripe EMEA business lead Matt Henderson said: “In just five years, Paystack has done what many companies could not achieve in decades. Their tech-first approach, values, and ambition greatly align with our own.
“This acquisition will give Paystack resources to develop new products, support more businesses and consolidate the hyper-fragmented African payments market.”
The financial details of the deal, which is subject to the receipt of regulatory approvals, have not been divulged.